India, Aug. 18 -- The Government of India has issued a release:
India's FTA journey is moving from expanding its network of agreements to making fuller use of the market access. Recent export performance shows the growing commercial importance of FTA partners. A shift is visible in early export gains, rising preferential CoO issuance and a wider range of exports to these markets. This indicates that more businesses are beginning to engage with opportunities created by the agreements. The transition is also being supported by government initiatives that help exporters access preferential benefits and enter new markets.
Table 1: India's Merchandise Exports to FTA Partners (2025-26)
FTA market
Exports (US$ million)
FTA Groups
ASEAN
38,416.33
SAFTA
25,774.68
FTA Countries
UAE
37,359.11
United Kingdom
13,444.19
Singapore
11,863.66
Nepal
7,447.11
Australia
7,284.17
Malaysia
6,825.55
Japan
6,039.50
Republic of Korea
6,012.03
Sri Lanka
5,516.83
Thailand
5,058.60
Oman
4,021.48
Bhutan
1,252.86
New Zealand*
566.51
Mauritius
473.64
Source: Ministry of Commerce & Industry
*Signed, yet to be effective
India's New-Generation FTAs: Early Success Stories
India-UAE CEPA: Delivering Early Trade Gains
India-Australia ECTA: Expanding a Successful Trade Partnership
Facilitating Exporters' Access to FTA Benefits
A Wider Range of Products Reaching FTA Markets
Table-2: Expansion in Exported Tariff Lines under Recent FTAs
Market
Initial tariff-line coverage
Latest tariff-line coverage (2025-26)
Increase
UAE
7,546 (2021-22)
8,053
6.7%
Australia
5,396 (2020-21)
5,668
5.0%
Mauritius
3,593 (2021-22)
4,345
20.9%
Oman
2,879 (May 2026)
3,371 (June 2026)
17.08%
Increased Market Access for Merchandise Goods
New Opportunities for Indian Services
Services account for nearly 30% of India's employment. Further, services exports stood at US$ 421.3 billion in FY 2025-26. Given its scale, the sector forms an important part of India's FTAs.
What is MFN?
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) came into force on 1 May 2022. It was India's first full free trade agreement in a decade, with negotiations completed in record 88 days.
The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into force on 29 December 2022. The ECTA is India's first trade agreement with a developed economy in more than a decade.
Most-Favoured-Nation (MFN) treatment is a principle of non-discrimination in which all trading parters of a country are treated equally.
Largest individual FTA export market: India exported merchandise worth US$ 37,359.11 million to the UAE in FY 2025-26. Among India's trade agreements, the UAE was India's largest export destination.
Strong export performance: Total bilateral trade reached US$ 24.1 billion in FY 2024-25. India's exports to Australia have increased from US$ 4 billion in FY 2020-21 to US$ 7.28 billion in FY 2025-26, recording 80%+ growth.
Bilateral Trade Crosses US$ 100 Billion: Bilateral trade crossed US$ 100.06 billion in FY 2024-25, recording a 19.6% growth. This milestone was achieved within three years after the agreement came into force.
Complete duty-free market access: Australia provided immediate zero-duty access across 98.3% of its tariff lines. From 2026 onwards, all Indian exports are now eligible for zero-duty access to the Australian market.
Success driving a wider partnership: Following bilateral trade success, India and the UAE set a new target of doubling trade to US$ 200 billion by 2032.
Success taken forward through new initiatives: The ECTA provides the foundation for a more ambitious Comprehensive Economic Cooperation Agreement (CECA) , currently under negotiation. It aims to cover goods, services, mobility, digital trade, rules of origin and emerging areas of cooperation.
India's FTA Export Landscape
Over the past decade, India has pursued a more confident and forward-looking trade strategy, expanding its network of Free Trade Agreements (FTA). Each agreement reflects the scale of the Indian market, the country's economic potential and growing international confidence in the capabilities of its 1.4 billion people.
The recent trade agreements span major global markets, widening trade partnerships and creating diverse opportunities for exporters.
Beyond newer engagements, India is also focusing on their effective utilisation. The emphasis is on translating market access into wider export participation, investment and employment while safeguarding domestic priorities. This balanced approach aims to strengthen the contribution of FTAs to India's journey towards Viksit Bharat by 2047.
Export Performance across FTA Markets
India's expanding trade-agreement network connects exporters with several markets. This expansion is supported by the country's growing export base. In FY 2025-26, combined merchandise and services exports reached a record US$ 863.1 billion, including merchandise exports of US$ 441.8 billion. The momentum has continued in FY 2026-27.
Within this overall export performance, India's FTA partners constitute important markets for merchandise exports.
Among these markets, the UAE and Australia illustrate the early progress under India's recent trade agreements.
Early gains are also reflected in the growing use of tariff concessions and the wider range of products exported. They show how businesses are increasingly using the opportunities created by these agreements.
Export Facilitation and Product Diversification under Recent FTAs
A trade agreement opens preferential market access, while its practical use depends on exporters claiming the available benefits. Under an FTA, exporters generally need to provide proof of origin for their goods. This establishes their eligibility for the preferential tariff treatment available under the agreement.
A preferential Certificate of Origin (CoO) confirms that the goods meet the prescribed rules of origin. This allows qualifying goods to receive reduced or zero customs duties.
Preferential access is being used across agreements at different stages of implementation.
The increase in preferential CoO issuance is supported by government measures that simplify procedures for exporters.
The reach of an FTA is also reflected in the range of products entering partner markets. This product-level expansion is visible across several of India's recent agreements.
FTAs Connecting Indian Goods and Skills to Global Markets
Recent FTAs provide preferential access to a substantial share of partner-country tariff lines.
These agreements expand market access across several labour-intensive sectors. This includes textiles, agriculture and processed food, leather and footwear, marine products, gems and jewellery, carpets and handicrafts. Wider opportunities in these sectors enable smaller producers and local enterprises to participate more actively in international trade.
Further, calibrated tariff liberalisation and transition arrangements preserve policy space to safeguard farmers and sensitive domestic sectors.
Alongside goods, India's recent FTAs have expanded opportunities for service providers and professionals. This is particularly significant given the sector's growing contribution to employment, exports and overall economic activity.
Key commitments covering market access, professional mobility and related support measures are highlighted below.
For detailed information please refer to: India - New Zealand Free Trade Agreement Signed
For detailed information please refer to: India-EU Partnership: India's Growing Engagement with European Union
For detailed information please refer to: India-UK CETA Comes into Effect
For detailed information please refer to: India-EFTA Trade Pact: Boosting $100 Billion Investment and 1 Million Jobs
For detailed information please refer to: India-Oman CEPA
Taking India's FTA Journey Forward
India's recent FTAs are entering a deeper phase of implementation. As businesses make greater use of the access secured under these agreements, their impact will extend. This will widen export participation, diversify trade and strengthen commercial relationships with partner markets.
As recent agreements enter a deeper phase of implementation, India is also widening its future trade agenda. Around ten trade agreements are under discussion including new negotiations with the Eurasian Economic Union, Peru, Chile, Israel, Canada and Maldives. Further, existing agreements such as the India-Korea CEPA and India-Sri Lanka ETCA are being upgraded.
At the heart of this expanding network lies a larger promise: taking the enterprise and aspirations of Indians to more markets worldwide.
References:
Prime Minister's Office (PMO):
https://www.pib.gov.in/PressReleasePage.aspx?PRID2216270&lang1®3
Ministry of Commerce & Industry:
https://www.pib.gov.in/PressReleasePage.aspx?PRID2290437
https://www.pib.gov.in/PressReleasePage.aspx?PRID2284139&lang2®48
https://www.commerce.gov.in/files/2026-04/Annual_0.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID1810279®48&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID2195127®48&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID1812730®3&lang1
https://www.pib.gov.in/PressReleasePage.aspx?PRID2248223&lang1®3
https://www.trade.gov.in/pages/certificate-of-origin
https://www.pib.gov.in/PressReleasePage.aspx?PRID2149736®48&lang2
https://content.dgft.gov.in/Website/HBP_07_2026_Chapter_02.pdf
https://www.trade.gov.in/pages/about-trade-connect-eplatform
https://www.pib.gov.in/PressReleasePage.aspx?PRID2267513®48&lang2
https://www.commerce.gov.in/files/2026-04/final_1.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID2288851®48&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID2236134&lang1®3
https://sansad.in/getFile/lsapps/loksabhaquestions/annex/188/AU1405_0GOh6X.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID1821785®48&lang2
World Customs Organization:
https://www.wcoomd.org/en/topics/origin/overview/faq-origin.aspx#Q6
World Trade Organisation:
https://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm6_e.htm
Department of Foreign Affairs & Trade (Australian Government):
https://www.dfat.gov.au/trade/agreements/in-force/australia-india-ecta/australia-india-ecta-official-text/chapter-4-rules-origin
https://www.dfat.gov.au/trade/agreements/in-force/australia-india-ecta/outcomes/australia-india-ecta-benefits-australia-overview
PIB Archives:
https://www.pib.gov.in/PressNoteDetails.aspx?ModuleId3&NoteId154945®48&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID2177724®48&lang2
https://www.pib.gov.in/PressReleasePage.aspx?PRID2240065&lang1®3
https://www.pib.gov.in/PressReleasePage.aspx?PRID2233417®3&lang1
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Disclaimer: Curated by HT Syndication.
